Here is WHY Gold is a Bad Investment

[murray t turtle]

Quote from tradingjournals:

1. Today GLD gapped down, yet put options premium went down. Market makers may have knows something.

2. 1:38PM: silver just touched 39.889. How did SLV do?

Update: Unless SLV on google is delayed, SLV is one 1 dollar off (management fees?).

==========
T journal ;
SLV looks better uptrend than SPY, DIA , most all time frames but thats no t really saying much.None of those close to APR highs.SLV has better buy volume than SPY, but thats not saying much either

Silver costs about $10 an OZ/open pit ,[plus export tax, plus transportation...plus insurance ] to mine in Argintina;
long term uptrend is fine .............................................$40 area is a key for SLV, silver, nor would i get to excited about $40.44 silver.

Gold frankly did not do much [up or down]1987 thru 1997;
but looks like a young, good ,strong, nice buy vol uptrend.

Sounds like the way the market makers are pricing premium , its reflecting that. I took your word on the option/insurance premium info.

 

[MKTrader]

Quote from murray t turtle:

Gold frankly did not do much [up or down]1987 thru 1997;
but looks like a young, good ,strong, nice buy vol uptrend.
[/B]

As I said earlier, these "gold is a bad investment" studies inevitably start around 1980/1981 just after a major secular peak in gold. That's no more objective than studying stocks from 1929-1954 (that's about how long it took to recover from the Great Crash/Depression) or from 1999-present.

It's little wonder why the large brokerages and financial planners like to point to their flawed gold studies, though....

 

[shortie]

Poor Man's Gold is Breaking Out -- Sell Your House and Buy Silver?
Nick Levis, Hedgephone | Jul. 17, 2011, 5:48 AM | 11,371 | 17

Nick Levis s a hedge fund manager, author, private equity investor, and wealth management consultant with over 12 years of experience in financial markets.
Recent Posts


July 16, 2011 nsl www.hedgephone.com

Investors have pushed silver above the recent channel high at around $39 or so per ounce and I fully expect a retest of $50 if any more talk is given about QE3 — Silver rises because of the rising digital money supply, not from speculation. Owning cash is speculative whereas owning metals is conservative or a safe haven at current prices.

Read more: http://www.businessinsider.com/poor...our-house-and-buy-silver-2011-7#ixzz1SgkKOtab

it's interesting that one could be so confident that he fully expects +25% gain in silver (if QE3 is talked about some more).